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  • 9 July 2026
  • Market: Chemicals, Methanol

The methanol market is navigating significant volatility following recent geopolitical tensions in the Middle East. The Iran conflict and temporary disruptions through the strait of Hormuz have triggered sharp swings in supply and pricing, with downstream impacts across global methanol trade flows and derivative markets.

Dave McCaskill, VP of Methanol and Derivative Services at Argus, examines the current state of the market, focusing on:

  • How the shutdown of methanol flows through the Strait of Hormuz and lost Middle East production reshaped global supply.
  • Why methanol spot prices soared above $600/t and then plunged below $300/t as flows resumed.
  • Demand destruction across key markets, particularly China’s MTO sector, and what this means for 2026 consumption.
  • When year-on-year demand growth could finally return, and what recovery might look like in 2027.

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